flagship ams proposal to haffa members

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Received by HAFFA on 6 Dec 2002 Import2000 Global AMS-CSI Gateway Service for HAFFA MEMBERS FCS Proposal 1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790 Silver Spring, MD 20910 FAX (301)-562-7795 FLAGSHIP CUSTOMS SERVICES, INC.

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Page 1: Flagship AMS Proposal to HAFFA Members

Received by HAFFA on 6 Dec 2002

Import2000

Global AMS-CSI Gateway

Service

for HAFFA MEMBERS

FCS Proposal

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 2: Flagship AMS Proposal to HAFFA Members

Import2000

Global AMS-CSI Gateway Service

1.0 Introduction

The purpose of this document is for Flagship Customs Services, Inc. (FCS) to provide a proposal to HAFFA MEMBERS for the provision of a turnkey global service that will allow HAFFA MEMBERS to fully comply with the U.S. Customs AMS-CSI Regulations and Procedures.

The Trade Act 2002 and subsequent regulations have drastically altered the way that Vessel Owning Common Carriers (VOCCs) and None Vessel Owning Common Carriers (NVOCCs) will interact with the U.S. Government to process cargo being imported into or transiting through the United States. These regulations will require fundamental changes to existing business and operational procedures and their support systems.

FCS is the leading Internet Application Service Provider (ASP) for the International Trade Business Sector and the partner of choice for over 12000 companies of all sizes and governmental entities. In addition FCS is the largest independent provider of electronic interfaces into both the Automated Manifest System (AMS) and the Automated Export System (AES). As such, FCS has provided and maintained electronic links into US Customs since the early 1990s.

FCS owns and operates two mirrored and redundant data centers that currently support a family of B2G Gateway Services, including:

Import2000 Family of Products and Services Export2000 AESDirect AES2000 MQ*Customs

FCS B2G Gateway Services are currently supporting: 12,000+ client users generating 500,000+ documents per month, and 1,000,000+ transactions per month

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 2 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 3: Flagship AMS Proposal to HAFFA Members

Specifically the FCS Import2000 Software and Service is designed and implemented to ensure that the NVOCC or VOCC fully complies with the AMS-CSI regulations and procedures.

A summary of key new requirements, fully supported and strictly enforced by the Import2000 software and service, include:

The USCS will be requesting that the filing carrier file their complete import manifest for each POL (for all PODs) 24 hours prior to departure from each POL. This will be required for all POLs worldwide.

The filer will be required to report all manifest cargo including FROB (foreign-to-foreign) and Empty Containers into AMS. There is a strictly enforced process to govern the filing of this data.

Enforced use of the U.S. Customs Secondary Notify Party (SNP) capability to ensure effective and timely communication between the VOCC and NVOCC concerning the filing and status of Bills of Lading.

Additional information such as Pre-Carrier Receipt and detailed container information, including seal number(s), will be required to be provided to AMS on the import manifest.

All NVOCC cargo will be required to be filed at the House Bill level.

All amendments to the initial manifest will be strictly monitored by USCS and other government agencies.

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 3 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 4: Flagship AMS Proposal to HAFFA Members

2.0 FCS AMS-CSI Solution

2.1 Overview

FCS is proposing that HAFFA MEMBERS implement the FCS Import2000 Service to allow them to fully comply globally with the new AMS-CSI regulations in the timeframe imposed by the regulations.

The FCS AMS-CSI solution is an Internet and data center based service and is comprised of the following major components:

• Central AMS CSI Engine - Import2000 CSI Software• Global Manifest Data Entry and Response Service• MQ connectivity to U.S. Customs• Mirrored and Redundant Data Center Facility and Operations

FCS will provide HAFFA MEMBERS a complete turnkey CSI solution using these existing capabilities. Specifically the Central AMS CSI Engine and the Global Manifest DataEntry and Response capability will be provided as a seamless and integrated Import2000 Service allowing global manifest data entry and ensuring strict CSI compliant submissions to AMS.

In addition, FCS is able to offer the additional capabilities to HAFFA MEMBERS as the need arises. These include:

• SNP Capability and Software• Global Container Load Alert Service• Export Manifest and SED filing capability

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 4 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 5: Flagship AMS Proposal to HAFFA Members

2.1 Import2000 AMS-CSI Software

The Import2000 AMS-CSI Software, which was originally developed and has been in use since the early 90’s, is a complete AMS-CSI interface offering the following major features:

• Strictly Enforces all AMS/CSI Data Requirements• Supports Full Customs AMS/CSI Operations• Allows FROB Cargo and Empties• Has Full User Access Control – Port of Load, Port of Discharge, All

Functions• Automated or On-Demand Manifest Submission by POL• Enforces SNP encoding by Vessel/Voyage• Automated B/L and Container Release Algorithm• Keyed Entry or EDI B/L input as/where required• EDI Output of B/L and Status to in-house System option• Service or In-house – smooth transition when required

This software will ensure that all messages sent by HAFFA MEMBERS to The U.S. Customs AMS system fully comply with the CSI regulations. It will also ensure the correct receipt and processing of all messages received from AMS.

2.2 Global Manifest Data Entry and Response Service

Key requirements of any AMS-CSI compliant user interface are:

Global capture of manifest data 24 hours prior to load at each Port of Load Ability to support worldwide implementation Compliance with all CSI data and process regulations User data and access control by Port of Load and service functions. Instant global visibility to U.S. Customs status and messages

To fully meet all of these demands FCS has created a Global Manifest Data Entry and Response Service. This service provides an Internet/browser based user interface that has global reach and is seamlessly integrated in to the Core FCS AMS-CSI Software. This provides a complete CSI solution for each user and corporately for HAFFA MEMBERS. The only requirement to fully access this service is a desktop computer, Internet access, and a browser.

The major features of this service are listed below.

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 5 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 6: Flagship AMS Proposal to HAFFA Members

• POL Based Manifest Data Entry• User Access and Security Controlled Centrally by filing carrier• WWW Based - Requires Only Browser and Internet Access• Seamless Integration into Carrier/NVOCC SAMS Central System• Supports Full EDI links• Provides Full CSI compliant AMS Data Entry and Amendment • U. S. Customs Responses Available On-line• Full On-line Help

2.3 FCS Mirrored and Redundant Data Centers

The Import2000 Services resides and runs in secure data center facility owned and operated by FCS.

The FCS data centers currently support the daily operation of over 12, 000 companies filing over 500,000 documents, and over transactions into the U.S. Government U.S. Customs Systems.

The design and architecture of these data centers offers unlimited scalability and unequalled data security.

The key features of the FCS Data Centers are listed below:

• Two fully Mirrored/Redundant Data Center facilities• Data Centers in Operation since 1994• All Data Centers Certified by U.S. Government• 7*24 Monitored Operations• Full Hot Standby and Disaster Recovery Capability• Multiple Redundant T1 Internet Connections• Multiple Redundant MQ Connection to U.S. Customs

An overview of one of the FCS Data Center Operations is shown overleaf

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 6 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 7: Flagship AMS Proposal to HAFFA Members

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 7 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Mail

DNS

Monitoring

EDI Gateway Cluster MQ Gateway Cluster

Web Cluster

Firewall

Import2000 CSI Cluster

Centralized Backup System

Import2000 CSI Hot Standby

U.S. Customs AMS

Encrypted WAN Connection to Data Center 2

Internet

Http, Https

Encrypted Frame Relay with ISDN Backup

FCS Data Center 1 Overview

Page 8: Flagship AMS Proposal to HAFFA Members

2.4 FCS Data Center MQ Connectivity to U.S. Customs

All FCS services utilize MQ Technology to connect to U.S. Customs. MQ Technology is the telecommunications method of choice of U.S. Customs. FCS believes that no other connection method will support CSI operational requirements. Even though users have the security of an MQ connection to U.S. Customs, this is a background and transparent capability, all user interfaces are conducted through a secured connection to the Internet. Thus, users are provided with the ease of use and connectivity of the Internet with the benefits of a dedicated MQ connection to AMS.

The key features of MQ, as implemented by FCS, compared to other older connection methods are listed below:

Other SNA Connections Offer…… FCS MQ To Customs Connection Offers……Unsecured Connection Vs Secured Encrypted Connection Limited (luck of the draw) Access and Capacity Vs Connection Always AvailablePhone Outage and Disconnection by Customs Vs Dedicated, Stable, Monitored ConnectionNo-automated Back-up if Disconnected Vs Automatic ISDN Switched Back-upSpeed Connection 9.6 Kb - 14.4Kb Vs Broadband Connection Links to Low-Tech Customs Batch Process Vs Links to High Tech Customs Transaction Process

The FCS MQ Connection to AMS offers: Response Time of 2 – 3 Minutes, Full Scalability with Guaranteed No Loss of Data

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 8 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 9: Flagship AMS Proposal to HAFFA Members

2.4 User System Requirements

To access and use the Import2000 Service requires no computer hardware or software investment. Import2000 users need only a computer capable of running one of the web browsers listed below with a dial-up, or dedicated Internet connection.

Recommended User Computer Operating System:Windows 95, Windows 98, Windows Me, Windows NT 4.0, Windows 2000, or Windows XPProcessor: 486DX2/66 or Faster (i.e. Intel Pentium, AMD K6 or K7)Memory: At Least 16MB (Windows 95/98), 32MB (Windows NT)Hard Drive Space: 25-100 MB

Connection SpeedIf you are using a modem to access Import2000 you should have a modem capable of at least 28.8 Kbs. Modems that are capable of higher rates (33.6 Kbps or 56 Kbps), or broadband connections are recommended for better performance.

Supported Web BrowsersImport2000 is designed to support Netscape Navigator/Communicator Versions 4.x and higher, and Microsoft Internet Explorer Versions 4.x, 5.x, and 6.x.

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 9 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 10: Flagship AMS Proposal to HAFFA Members

3.0 FCS AMS-CSI Proposal

FCS proposals to make the Import2000 AMS-CSI Service available to HAFFA MEMBERS, as follows:

The services and charges detailed below pertain to set-up, usage, and maintenance associated with the following SCAC code(s):

_______

One Time Costs:One Time Environment Set Up and AMS Certification Fee: US$1000Optional training at FCS location US$1000/dayOn-Line Training via the WWW US$100/person/class

Monthly Usage Fee:For each calendar month:

For Bills of Lading Transactions 1 - 4000: US$1.00 per Bill of Lading

For Bills of Lading Transactions: 4000+ US$0.75 cents per Bill of Lading

A minimum charge of US$250 per month will apply. This minimum charge will not apply in any month that the number of Bills of Lading exceeds 250.

A Bill of Lading Transaction is a single Production Bill of Lading created by HAFFA MEMBERS in the Import2000 Service.

Notes:

No additional charge is made concerning the number of times a Bill of Lading is transmitted to the AMS system.

No additional charge is made concerning any and all responses received from the AMS system.

At any time, with 30 days written notice to FCS, HAFFA MEMBERS may request to be transferred to a fixed monthly subscription fee of US$5,000 per month. This fixed subscription fee will provide for unlimited Bills of Lading and fully replace the Bill of Lading transaction charge. The transfer to a fixed monthly subscription fee will occur on the first day of the month following the 30 day notification.

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 10 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 11: Flagship AMS Proposal to HAFFA Members

Invoices will be rendered monthly. HAFFA MEMBERS will pay all invoices within thirty (30) days of the receipt.

Maintenance:

Import2000 CSI environment maintained to be in compliance with U.S. Customs AMS System

Import2000 CSI environment maintained to support the requirements of U.S. Customs CSI Program

Correction of all identified software errors Full monitored data center operations to ensure 7*24 connectivity

Usage Available:Unlimited number of Bills of Lading from the specified SCAC code(s)

Consulting Services:Consulting Services will be charged per FCS contact rate, currently US$125.00/hour. Examples of chargeable items include but not limited to:

Software Development and Testing associated with creating EDI links or any other software customization.

Additional training, on-site or by phone. Assistance to run the system on behalf of the client. Liaison with US Customs to resolve clearance problems, except in cases where

the FCS service is at fault or gave less than clear information.

All Software Development and Testing will be the subject of a separate fixed price quotation and agreement between FCS and HAFFA MEMBERS.

Travel and Living Expenses:

Any authorized travel and living expenses will be billed at cost. Only expenses pre-approved by HAFFA MEMBERS will be incurred.

User connection to the Import2000 Service:Unlimited number of users for the specified SCAC code(s).

HAFFA MEMBERS Phone Support:Unlimited phone support for users of the system for the specified SCAC code(s), except, any single problem that takes more than 2 hours of time to resolve will be billed at a rate of US$125.00 per hour (or part of).

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 11 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 12: Flagship AMS Proposal to HAFFA Members

4.0 Summary Implementation Plan

FCS would propose the following implementation plan:

• November 2002• Sign agreements• Produce joint detail implementation schedule• FCS Set up AMS environment• FCS Set up Import2000 environment

• December 2002• Import2000 Training for key USA staff• FCS/HAFFA MEMBERS set-up initial users with appropriate functional

and POL mapping to support operational procedures• AMS certification completed• Initial rollout of Import2000 at selected POL(s)

• January 2003• First production manifest filed at selected POL(s)• Full roll-out of Service (by POL)

• 2003+ As Required• Introduction of EDI input from POL(s)• Introduction of Global Alert Service as required• Export manifest filing as required• Transition systems from service to in-house

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 12 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 13: Flagship AMS Proposal to HAFFA Members

Flagship Customs Services, Inc.FCS Import2000 Agreement

Between: _________________________________________________________________________ with an office at______________________ ____________________________ ______________________ (hereinafter referred to as "Customer"), and Flagship Customs Services Inc. of 1010 Wayne Avenue, Suite 1225, Silver Spring, MD 20910 (hereinafter referred to as "FCS"):

Agreement Effective Date: __/__/2002Agreement Initial Anniversary Date: __/__/2003

Services Provided

Subject to the terms and conditions contained herein and subject to the applicable terms and conditions of the Price Schedule contained in Appendix A, FCS agrees to furnish access to the Import2000 CSI Computer Service and Customer agrees to same in ac-cordance with this Agreement.

The Import2000 CSI Computer Service provides Customer access to the Import2000 CSI Software running on an FCS data center facility. The Import2000 CSI Software provides Customer the ability to enter, validate, and display data in accordance to the standards set by the U.S. Customs Automated Manifest System (AMS) and the Container Security Initiative (CSI), and to send this data to and receive response from AMS. In addition, the Import2000 CSI Software will contain the reports listed in Appendix B.

Unless otherwise specifically stated, the services provided by FCS do not include equipment or devices or charges for the transmission or receipt of the service or services at Customer's location, and Customer, at its own expense and independent of this Agreement, will procure and obtain any and all of such necessary equipment and supplemental services.

Specific Computer Services and Pricing

Customer by accessing and using the Import2000 CSI Computer Service of FCS agrees, upon receipt of billing to pay the then applicable charges for such services as set forth in Appendix A. FCS reserves the right to add, withdraw or modify any particular service in the interest of maximizing the effectiveness of its services.

Prices applicable to the services provided hereunder do not include sales, use, excise, value, utility or other similar taxes. Consequently, in addition to the specified prices, the amount of any present or future sales, use, excise, value added, utility, or other similar tax applicable to the sale of services hereunder shall be paid by the Customer, or in lieu thereof, Customer shall provide FCS with a tax-exemption certificate acceptable to the taxing authorities.

General Terms and Conditions

1. Term and Termination of Agreement

1a. Term

This initial term of this Agreement shall be six (6) calendar months, from the Effective Date to the Initial Anniversary Date of the Agreement. This Agreement shall be in full force and effect during this period. Thereafter this Agreement shall renew automatically for an additional six (6) calendar months on the first and each successive Anniversary Date unless terminated. This Agreement may be terminated by either party by such party providing written notice of termination to the other party no less than thirty (30) days prior to each Anniversary Date.

1b. Termination

Customer may terminate the Import2000 CSI Computer Service, effective upon notice thereof to FCS, if FCS neglects, breaches, or fails to perform or observe any of the terms or obligations set forth in this Agreement for the specified service, provided that FCS shall have thirty (30) days after receipt of notice from Customer to cure said breach.

2. Price Schedule Amendment

FCS may change any aspect of the Price Schedule, effective on each Anniversary Date, by providing written notice of such change to Customer no less than sixty (60) days prior to each Anniversary Date. Changes to the Price Schedule will not be intended to increase unit costs except to cater for industry standard cost inflation...

3. Service Availability and Data Security

All data submitted by Customer to The Import2000 CSI Computer Service shall be considered by FCS to be private to Customer. FCS shall hold all such data in a private and secure manner and will not disclose, or permit to be disclosed to any third party.

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 13 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 14: Flagship AMS Proposal to HAFFA Members

Service Performance and Availability: FCS guarantees to deliver any and all data submitted by Customer to U.S. Customs to the appropriate the U.S. Customs system. FCS guarantees to make available for access by Customer any and all data received from the U.S. Customs system addressed to Customer. In relation to items under its direct control FCS will make best efforts to maintain the overall availability of The Import2000 CSI computer Service to a 100% level.

4. User Code Assignment

The FCS will assign any necessary User Code(s), or other special identifying or system features as may be necessary. On receipt of such from the FCS the Customer assumes full responsibility for the security of such User Code(s), or other special identifying or system features.

5. File Security

Should Customer's files or data be lost or destroyed directly for whatever reason, Customer's exclusive remedy is as follows: FCS will be responsible for the reconstruction of Customer's files or data at the lowest cost to FCS, provided the data is available to FCS on storage media in FCS's control.

6. Improvements and General Administration

In order to continuously improve the quality of service and support thereof to the Customer, the FCS reserves the right to designate and make changes in rules of operation, accessibility periods, Customer identification, administrative procedures, and functional changes to the Import200 CSI Computer Service and Software.

FCS will maintain and modify the Import2000 CSI Computer Services in such a manner as to keep it in full compliance with System the U.S. Customs AMS Vessel Transportation and CSI Programs.

7. Force Majeure

Neither party shall be liable to the other by reason of any failure in performance of this Agreement in accordance with its terms if such failure arises out of causes beyond the reasonable control and without the fault or negligence of such party. Such causes may include, but are not limited to, unavailability of communications facilities, acts of God or public enemy, acts of the other party, acts of civil or military authority, fires, and strikes, unavailability of energy sources, delay in transportation, riots or war.

8. Warranty

Subject to the provisions of this paragraph and the paragraph entitled "Limitations of Liability," the FCS warrants that the computer service and support thereof provided hereunder shall be as described herein. THIS WARRANTY IS EXCLUSIVE AND IS IN LIEU OF ALL OTHER WARRANTIES, AND Customer HEREBY WAIVES ALL OTHER WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR USE FOR A PARTICULAR PURPOSE.

9. Limitations of Liability

IN NO EVENT SHALL THE FCS BE LIABLE FOR SPECIAL OR CONSEQUENTIAL DAMAGES ARISING FROM THE PROVISION OF OR FAILURE TO PROVIDE SERVICE OR SUPPORT HEREUNDER, EVEN IF FCS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. FURTHERMORE, LIABILITY OF FCS FOR ANY AND ALL CAUSES, WHETHER FOR NEGLIGENCE, BREACH OF CONTRACT, WARRANTY OR OTHERWISE SHALL, IN THE AGGREGATE, NOT EXCEED THREE MONTHS' AVERAGE BILLING TO Customer HEREUNDER TAKEN OVER THE TWELVE MONTHS PRECEDING THE MONTH IN WHICH THE DAMAGE OR INJURY IS ALLEGED TO HAVE OCCURRED, OR, IF THIS AGREEMENT HAS NOT BEEN IN EFFECT FOR TWELVE MONTHS PRECEDING SUCH DATE, THEN OVER SUCH FEWER NUMBER OF PRECEDING MONTHS THAT THIS AGREEMENT HAS BEEN IN EFFECT. IN ADDITION, Customer AGREES THAT FCS WILL NOT BE LIABLE FOR ANY LOST PROFITS, NOR FOR ANY CLAIM OR DEMAND AGAINST THE Customer BY ANY OTHER PARTY. THE REMEDIES SPECIFIED HEREIN ARE EXCLUSIVE.

10. U.S. Customs - Customer Responsibility (Including Downtime Policy)

The Customer agrees to be fully responsible and liable in all respects, directly or indirectly, for matters relating to access and use of the Import2000 CSI Computer Service, including but not limited to all questions and matters relating to timeliness and accuracy of any and all data entered into the Import2000 CSI Computer Service and sent to AMS, all questions and matters relating to the timeliness and accuracy of any and all responses to data received from AMS.

Specifically, should Customer be unable, for whatever reason, to submit manifest data electronically to the U.S. Customs AMS system prior to vessel arrival, Customer is required by the U.S. Customs Service to initiate the following procedure:

Inform their U.S. Customs AMS Client Representative of the nature and extent of the problem Inform U.S. Customs representative at each effected port of arrival

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 14 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 15: Flagship AMS Proposal to HAFFA Members

U.S. Customs at each effected port of arrival will inform Customer if they are required to submit a paper manifest for each effected vessel arrival

Regardless of the requirement to submit a paper manifest Customer will be required to submit any effected manifest to the AMS system as soon as they are able to do so

11. General

11a. Any assignment of this agreement by the Customer without the written consent of the FCS shall be void. Customer's insolvency, receivership, or voluntary or involuntary bankruptcy, or the institution of proceedings therefore, or any assignment by Customer for the benefit of its creditors, will immediately terminate this Agreement without notice.

11b. INVOICES ARE PAYABLE UPON RECEIPT. If not paid within ninety (90) days after date, FCS may (reserving cumulatively all other remedies and rights under this Agreement and in law) at its sole option and discretion suspend services until full payment for all outstanding invoices is received.

11c. If any part or parts of this Agreement are held to be invalid, the remaining parts of the Agreement shall continue to be valid and enforceable as to the parties hereto.

11d. This Agreement (including the Price Schedule in Appendix A) contains the full understanding of the parties with respect to the subject matter hereof, and no waiver, alteration, or modification signed by a duly authorized representative of the FCS. Neither the course of conduct between the parties nor trade usage shall act to modify or alter the provisions of this Agreement. This Agreement supersedes and replaces any prior agreement between FCS and Customer for the Import2000 CSI Computer Service.

11e. This Agreement shall be construed with, and the rights and obligations of the parties shall be determined in accordance with the laws of the place at which the principal office of the FCS is located.

11f. Any action of any kind by the Customer against the FCS arising as a result of this Agreement must be commenced within the minimum period of time which parties may lawfully agree upon under applicable law as the period within which such suit must be commenced, or within one year from the date of the right, claim, demand, or cause of action shall first accrue, whichever is longer.

11g. In the event that FCS should neglect, breach or fail to perform or observe any of the terms or obligations set forth in this Agreement for a specified service, provided that FCS shall have five (5) working days after receipt of notice from Customer to cure said breach, Customer will not be liable for any charges or fees for the service in breach for a period starting five (5) working days after the time of written notification of said breach until the breach is cured.

12. Confidential Information

12a For the purpose of this clause, "Confidential Information" means all information of a confidential or proprietary nature disclosed (whether in writing, electronic form or orally or by any other means and whether directly or indirectly) by Customer to FCS (or acquired or otherwise obtained by FCS) whether before or after the date of this Agreement including, without limitation, any information relating to Customer's and its affiliates business operations and clients, including all manifest information, shipment data, services, operations and business affairs pertaining to its business operations and clients. During the term of this Agreement and after the termination or expiration of this Agreement for any reason whatsoever FCS shall:

i. keep the Confidential Information confidential;

ii. not disclose the Confidential Information to any other person other than with the prior written consent of the Customer except as set forth in clause 2 and 3 hereof; and

iii. not use the Confidential Information for any purpose other than the performance of its obligations under this Agreement.

12b. During the term of this Agreement FCS may disclose the Confidential Information to its officers, employees and agents (each, a "Recipient") but only to the extent that such disclosure is necessary for the purposes of this Agreement.

12c. FCS shall procure that each Recipient is made aware of and complies with all the FCS's obligations of confidentiality under this Agreement as if the Recipient was a party to this Agreement.

12d. Not withstanding any other provision of this Agreement, in the event of a breach or threatened breach by the FCS of the provisions of this paragraph, the Customer shall be entitled to proceed in any court for an injunction restraining the FCS from disclosing in whole or in part any of the aforesaid Confidential Information.

Flagship Customs Services, Inc. Customer By:________________________________ By: _______________________________

Title:______________________________ Title:______________________________Date:______________________________ Date:______________________________

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 15 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 16: Flagship AMS Proposal to HAFFA Members

Appendix BPro-Forma AMS Letter of Intent

SAMPLE AMS LETTER TO CUSTOMS – Fax to FCS at (301) 562 7795. FCS will process into U.S. Customs on your behalf. This letter should be place on the letter head of the carrier (NVOCC) and signed by an authorized agent of the company.

Date _____________

Treasury DepartmentUnited States Customs Service1300 Pennsylvania AvenueRoom 6.3DWashington, DC 20229

Dear Sir,

This is to advise the U.S. Customs Service that _______________________________ wishes to use Flagship Customs Services, Inc. AMS Service Center for AMS services as an NVOCC. The required timetable for this use is listed below.

SCAC Code Carrier (NVOCC) Name Port(s) of Discharge

All US Ports

Regards,

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 16 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

Page 17: Flagship AMS Proposal to HAFFA Members

Appendix CList of FCS AMS Clients

1010 Wayne Avenue, Suite 1225 TEL (301)-562-7790Silver Spring, MD 20910 17 FAX (301)-562-7795

FLAGSHIP CUSTOMS SERVICES, INC.

FCS - CSI SolutionsExisting AMS – Clients

Chilean LinesLibraMontemarNorasiaCrowley American TransportAlliancaColumbus Lines (Hamburg SUD)Pacific International (Ecuadorian

Lines)Tampa Port AuthorityNorth Carolina Ports AuthorityWallenious Wilhelmsen LinesPort of Palm BeachPolynesian LinesNorth Pacific SteamshipOcean Star Line

King Ocean Lines and subsidiariesMatson NavigationIntermarineSea Star LinesNavieras LinesOldendorff Carriers MontshipBarwil AgenciesTurkon Container LinesContship Container LineBlue Ocean LinesCagema AgenciesSolymar LinesTMMNedLoydMexican LinesUnion Pacific

Automated EDI Links to over 30 Container Terminals to provide B/L release, including: Howland Hook, Maher Terminal, Maersk Terminals, Hanjin Terminals, SSA Terminals, ASI Redhook terimnal